Laura Sharman 11 October 2019

Hike in PWLB rate will cost councils £70m a year

Hike in PWLB rate will cost councils £70m a year image

The 1% increase to the Public Works Loan Board (PWLB) rate will cost councils £70m a year, town hall chiefs have warned.

In a letter to chief finance officers, the Treasury hiked the interest rate charged on loans to local authorities by one percent, taking the interest rate from 1.8% to 2.8% with immediate effect.

The Local Government Association (LGA) warned the increase will significantly increase the cost of borrowing for councils and put capital schemes at risk.

A spokesperson for the LGA said: 'This 1 per cent PWLB rate increase could cost councils an extra £70 million a year for borrowing to be undertaken in the next year.

'It presents a real risk that capital schemes, including vital council house building projects, will cease to be affordable and may have to be cancelled as a result.'

Regeneration company Be First called the decision 'dysfunctional' and warned it will hit public housing projects hard.

Managing director Pat Hayes said: 'It’s a dysfunctional decision by the Johnson led Government - it looks like the left hand doesn’t know what the right hand is doing.

'Boris Johnson promised to put ‘rocket boosters’ under the economy to boost economic growth in preparation for Brexit. But the reality is that the Treasury is choking off funding for badly needed housing and public infrastructure projects.'

Visit The MJ (£) for more on this story.

Time for a council tax precept to fund CCTV image

Time for a council tax precept to fund CCTV

The crisis in funding for CCTV systems is not being addressed by the government or the police and is leading to the curtailment of this vital service in local authorities across the country. How can we ensure that communities that want this service continue to receive it, asks Tom Reeve.
SIGN UP
For your free daily news bulletin
Highways jobs

Senior Lawyer (Safeguarding Children)

Royal Borough of Greenwich
£45834 - £48819 per annum
Are you an experienced childcare Lawyer with local government experience and looking for variety and challenge?The jobGreenwich Legal Services is comm England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Lawyer (Planning & Highways)

Royal Borough of Greenwich
£40869 - £43860 per annum
Are you a Planning & Highways Lawyer with local government experience and looking for variety and challenge?The jobGreenwich Legal Services is committ England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Regeneration Projects Manager

South Gloucestershire Council
£47,778 - £52,120
This is an exciting opportunity to lead comprehensive town centre regeneration programmes, specifically for... Gloucestershire
Recuriter: South Gloucestershire Council

Senior Lawyer, Regeneration & Property

Royal Borough of Greenwich
£45834 - £48819 per annum
Are you a Senior Regeneration & Property Lawyer with local government experience and looking for variety and challenge?Royal Greenwich is proud to be England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Job Evaluation & Research Officer

Birmingham City Council
£27,741 - £34,728
2 x Job Evaluation & Research Officers will be supporting the Senior Job Evaluation & Research Officer and Reward & Recognition Manager. Birmingham, West Midlands
Recuriter: Birmingham City Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue